I became self employed in 2020, and suddenly realised that whilst being my own boss is great, the lack of a steady and stable income can make things more than a little hairy. Throw into the mix a brand new family member in the shape of my baby daughter, and it was clear that I needed to reevaluate my finances.
Even without the financial upheaval of becoming self employed, accommodating a growing family can blindside those who don’t properly budget for it. beforehand. With proper planning, stretching your finances needn’t be a case of sitting in the dark and living off bread and water. Just by making several small changes, you’ll be able to see your money go just that little bit further.
Saving on your commute
For me, this was an obvious area in which I could save a fair chunk of money. Now that I was working from home, the household didn’t really need two cars.
Don’t get me wrong, I do miss being able to get into a car that isn’t filled with all my wife’s stuff, and doesn’t need the rear view mirror adjusting each time. I also miss the freedom that comes with being able to just jump in the car whenever and not have to schedule for other users.
Guess what though, for the amount of times that I need to get somewhere without the use of a car, the price of a bus or taxi is far less than I would’ve spent keeping a car on the road. If you live close enough to your workplace, you might even consider switching to a bicycle or moped.
Factor in loan repayments, petrol costs, road tax, MOTs, breakdown cover, insurance, and the inevitable garage bills, and you you can soon tell if your extra car is a luxury or a necessity.
Even if you absolutely need your own car for work you can still find ways to save money. Got a sporty model that glugs down petrol like there’s no tomorrow? Try a more economical model. Need a larger vehicle to transport tools or other heavy items to work? Consider Used Ford Vans. Younger drivers under 25 will save heaps on their insurance too if they ditch their large powerful car for a small hatchback with a more modest engine size. Find some more tips on how to reduce car insurance premiums here.
Learn how to cook properly
For some busy workers, the thought of coming home after a hard day and then having to prepare a meal, fills them with dread. In these instances, it’s easy to fall into a trap of going out to eat or ordering food in. The rise of online food delivery services has made this even more tempting.
Luckily the internet is equally awash with loads of quick and easy recipes. Once you’ve got a couple nailed down, you’ll be able to recreate them at the drop of a hat and with minimal fuss. For extra fuss-free dinners, invest in a slow cooker, or devote some time at the weekend to prepare meals that can be eaten during the coming week.
Sort out any financial loose ends
There’s nothing like having a baby on the way to prompt us into sorting out any outstanding loans and similar debts. To make sure that you start off in the best financial shape possible, it’s a good idea to try to clear any debt that might be hanging over your head. Obviously, this isn’t always possible, and even if you can afford to, it might make more sense to carry on with affordable monthly payments. Having children can be expensive, and you may well need any money you might have saved for the multitude of things that a baby needs.
If you have several loans/credit plans to repay at the same time, it may be worth looking into a debt consolidation service. While it may not be the answer for everyone, you may find that consolidating your debts into one loan can potentially save you money on interest or fees in the long term. Make sure to check any quotes out with a financial professional to ensure that it’s a worth looking into for your particular situation though. To get an even better idea of whether or not it’s better to pay off your loans early, try using a debt calculator. There’s a few ways in which these can be helpful, and you can find out more here.
Can you cut any subscription services?
The last 5 years has seen a huge increase in subscription services. You can have anything from football kits, socks, and craft cheeses curated and shipped in a box to you. They’re a great deal of fun, but often wholly unnecessary. We used to subscribe to a few luxury drinks services, but realised that we could find the favourites that we’d been introduced to cheaper online.
Non-curated subscriptions such as razors for shaving, are there purely for convenience. A box comes through the letterbox each month with everything you need so that you don’t even have to think about it.
Did you know however, that Amazon have been offering a similar service for a few years now? Next to certain items is an option to ‘subscribe and save’. With this, users can schedule repeat purchases of things like razor blades at the intervals that work best for them. Not only do they not charge anything for this, but customers are often given a slight discount for using this service.
This is just a small amount of ideas to help cut down on your monthly outgoings. There are many areas of our individual lifestyles that provide scope for cutting back. If you can change your mindset from ‘I can’t possibly live without my daily Starbucks’, to ‘how can I save money there?’ you’ll soon find yourself in better financial shape.
Looking for some gigs on the side to make money from home? Check out this list of stay-at-home dad jobs.
You might also be interested in how I quit my job to become a self employed writer.